Category: Contractor Industry News

The proposals by the government to increase the retirement age to 68 have been criticised by one pensions expert, who said the move might not be the best one for mature workers in the UK and could affect contractors.

Robin Ellison, head of strategic development for pensions at Pinsent Masons, said that the current pension system is unsustainable, however he does not welcome the coalition government's plans for extending the retirement age.

"I would object to what [Iain Duncan Smith] is doing, I think it is the wrong way to go. What he should be looking at is what the government thinks is the right number of years that the average UK citizen should spend in retirement, which is what the Swedes do," he stated.

The expert went on to say that, if the retirement age is going to be increased, then 65 year olds should not have to work a full five-day week.

Mr Ellison's comments followed the government revealing its retirement timetable, which suggests that the retirement age is likely to reach 68 by 2038.